**Xenia Hotels & Resorts Sells Fairmont Dallas for $111 Million**
Xenia Hotels & Resorts, Inc. has sold the 545-room Fairmont Dallas for $111 million, equating to approximately $203,670 per key. The sale price represents an 8.6x multiple and a 10.0% capitalization rate based on the hotel’s EBITDA and Net Operating Income for the twelve months ended February 28, 2025.
“We are pleased to have completed the sale of Fairmont Dallas, which opened in 1969 and which we acquired in 2011 for $69 million,” said Marcel Verbaas, Chairman and CEO of Xenia Hotels & Resorts. “The unlevered IRR during our ownership period is 11.3%, which is an excellent outcome for this investment, particularly given the pandemic’s significant negative impact on cash flows during 2020 and 2021.”
Proceeds from the transaction are expected to be used for general corporate purposes, which may include repaying existing debt, pursuing new acquisitions aligned with the company’s strategy, or repurchasing shares under its current authorization.
Xenia continues to own the Marriott Dallas Downtown and maintains a portfolio of 30 upper-upscale and luxury hotels, totaling 8,868 rooms across 14 states.
